Surefil gets tax abatements transferred, but not with out reservations from some in Kentwood

KENTWOOD -- After receiving more information from new owners of Surefil, Kentwood City
Commissioners last week granted transfer of existing tax abatements form the old owners to new owners ABACO Group.

"I have really struggled with this abatement request. I'm not going to transfer my unhappiness with the old owners to the new owner. I’m looking at this as new business partners for the city and I will support the transfers," said Commissioner Sharon Brinks.

Surefil received two tax abatements for its site at 4560 Danvers Drive in 2006 and 2007. The company later filed for bankruptcy.

ABACO Group, acquired the company at bankruptcy auction in 2010. None of the Surefil LLC partners are owners in ABACO Group.

ABACO is led by a father and son team of William and Mike Currie. William Currie is the former CEO of Universal Forest Products.

Commissioner Michael Brown did not support the transfer.

"I have no ill will toward your company. I do feel though that if you bought this out of bankruptcy you got a good deal already. Cities have been struggling financially so I plan to vote no on this one," he said.

Commissioner Richard Clanton also voted against the transfer of the abatements, but three other commissioners along with Mayor Richard Root voted to support it.

The transfers include abatements in 2006 on $1.4 million in real property and $3.03 million in personal property. The abatements expire in 2018 and 2014.

Abatements in 2007 are also transferred. Those abatements were for $1.25 million in real property and $6.15 million in personal property. They expire in 2019 and 2015.

Surefil, a contract filling company for soaps, lotions and shampoos, was started in 2006 by
Bill and Sue Hunt. At the time, the company received state business tax credits and tax abatements from the city with promises of employing 236 workers within a few years.

Instead, the company filed for Chapter 11 bankruptcy and was sold at auction in 2010.

The company currently has 70 employees and hopes to add at least 15 new jobs within two years. With the transfer, ABACO will not be held responsible for job creations promised by former Surefil management, but to new agreements they are making with the city.